In a sudden leadership shakeup, Intel CEO Pat Gelsinger has departed the semiconductor giant after less than four years at the helm, following mounting pressure from the company's board over the pace of Intel's turnaround efforts.
The abrupt exit was announced on December 2, 2024, with Intel naming CFO David Zinsner and Executive VP Michelle Johnston Holthaus as interim co-CEOs while the board searches for a permanent replacement.
Gelsinger, 63, who had returned to Intel in 2021 after previously spending 30 years at the company, was tasked with restoring Intel's leadership position in chip manufacturing. His ambitious strategy included expanding into contract manufacturing and building new fabrication facilities, backed by federal CHIPS Act funding.
However, the board reportedly lost confidence in the progress of these initiatives and Gelsinger's ability to narrow the competitive gap with rivals like Nvidia and TSMC. Sources indicate Gelsinger was given the choice to retire or face removal, ultimately opting for retirement.
The manner and timing of the announcement - without a prepared press release or transition plan - suggests an unplanned departure. Notably absent were customary arrangements for the departing CEO to remain involved in an advisory capacity.
The leadership change comes at a critical time for Intel as it faces multiple challenges: regaining technological leadership, competing in the AI chip market, and executing on its manufacturing expansion plans. The board now faces the complex task of finding a new leader capable of managing both Intel's traditional processor business and its emerging foundry services division.
Industry analysts speculate this transition could potentially lead to structural changes at Intel, including the possibility of splitting the company's manufacturing and product divisions into separate entities.
The next CEO will inherit the same fundamental challenges that Gelsinger was brought in to address, including catching up with competitors in key markets and revitalizing Intel's position in the $500 billion semiconductor industry.